US Supreme Court strikes down IEEPA tariffs, President Trump responds with 10% global levy

LAST UPDATE: Friday, February 20, at 14:26 pm EST. 

In a 6-to-3 decision, the US Supreme Court ruled that the 1977 International Emergency Economic Powers Act (IEEPA) doesn't authorize President Donald Trump to impose tariffs. The ruling effectively strikes down levies imposed by the Trump Administration on multiple countries around the world, a move that, according to SCOTUS, was done unlawfully, reported Law 360. 

In the court opinion, Chief Justice John Roberts writes that the court argued that the US Constitution grants Congress the power to impose taxes and levies, but the Executive branch doesn't enjoy the same power. 

The president "asserts the independent power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time. Those words cannot bear such weight," reads the decision.  Additionally, the justice writes that if Congress had intended IEEPA to bestow on the president "the distinct and extraordinary power to impose tariffs, it would have done so expressly—as it consistently has in other tariff statutes."

Joining Chief Justice Roberts in the dissent were Trump-appointed conservative Justices Neil Gorsuch and Amy Coney Barrett, along with liberal justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson.

Trump responds with a 10 percent global tariff

In a press conference at the White House on Friday afternoon, President Trump officially reacted to the Supreme Court decision, calling it disgraceful and saying he was ashamed of the Highest Court in the Land.  

The Head of State emphasized that the decision actually brought certainty to both the US and the global economy, as questions regarding IEEPA tariffs were now off the table. During his press conference, President Trump announced a 10 percent global tariff to replace the emergency levies struck down by the Supreme Court. 

He mentioned that implementing the new tariffs would be slightly more complicated, but assured that they would be in place within three days, right before the State of the Union on Tuesday night.  It's unclear whether these new levies will be applied across the board regardless of signed trade deals or other economic agreements, such as the US-Mexico-Canada Agreement, which exempted the US neighbors from any IEEPA tariffs.  

Regarding the revenue collected through tariffs, President Trump noted that the court decision didn't address whether the money should be reimbursed, rendering the ruling "totally defective." 

The ag industry celebrates the Supreme Court decision

The agricultural industry has been hard-hit by the Trump Administration's retaliatory tariffs since their announcement in April 2025. Levies on products like Brazilian and South African citrus have jeopardized entire sectors and threatened the economies of entire countries, which is why the Supreme Court decision was well received by the fresh produce community.

“IFPA welcomes the Supreme Court’s decision clarifying the limits of IEEPA and reaffirming that broad, country-specific tariffs fall outside its intended scope. The global trade of fresh produce is essential to the health and well-being of people in every nation, and today’s ruling helps restore predictability to a uniquely complex, seasonally driven marketplace," said the International Fresh Produce Association in a statement. 

The organization said it hopes the decision allows policymakers to move beyond broad tariff actions and "continue working toward lower trade barriers that ensure affordable access to fresh produce and floral products."

In Latin America, Richard Salazar, CEO of the Ecuadorian Association for Banana Export and Commercialization (ACORBANEC), emphasized that his industry remains respectful of US sovereignty and will comply with the country's trade rules. 

"If unlawfulness has been declared, it's the country's internal problem," he told FreshFruitPortal.com. "Those are sovereign decisions, and fruit importers will have to take adequate measures according to them."

Meanwhile, Víctor Catán, President of the Chilean National Federation of Fruit Producers (Fedefruta), joined in on celebrations of the US court decision.

"We think the ruling is healthy and brings back justice and trust to business, especially one like fruit export and production, which requires a lot of trust between producers and the American consumers."

Read the full Supreme Court decision below: 

tariffscotus

*All images are referential.
*Additional reporting by Macarena Bravo. 

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